Digital Finance Market Report 2026

The digital finance market size has grown rapidly in recent years. It will grow from $10.12 billion in 2025 to $12.02 billion in 2026 at a compound annual growth rate (CAGR) of 18.7%. The growth in the historic period can be attributed to expansion of online banking services, rising smartphone penetration, increased availability of digital financial tools, growth of e-commerce ecosystems, adoption of electronic transaction systems.

The digital finance market size is expected to see rapid growth in the next few years. It will grow to $23.67 billion in 2030 at a compound annual growth rate (CAGR) of 18.5%. The growth in the forecast period can be attributed to increasing investments in fintech innovation, rising demand for personalized financial services, expansion of open finance ecosystems, growing use of embedded finance models, continued shift toward cashless economies. Major trends in the forecast period include increasing adoption of digital payment platforms, rising use of cloud-based financial services, growing integration of ai-driven financial analytics, expansion of mobile-first financial applications, enhanced focus on financial inclusion.

The rising smartphone penetration is expected to drive the growth of the digital finance market in the coming years. Smartphone penetration refers to the proportion of people within a population who own and actively use smartphones. This penetration is growing as falling device costs make smartphones more affordable and accessible, resulting in higher adoption rates globally. Smartphones facilitate digital finance by enabling users to access financial services through mobile applications, allowing them to make payments, transfer money, and manage accounts anytime and anywhere. For example, in June 2024, Ericsson, a Sweden-based telecommunications company, projected that mobile subscriptions in the region would increase from 1.2 billion in 2023 to 1.3 billion by 2029. Consequently, the growth in smartphone penetration is fueling the expansion of the digital finance market.

Leading companies in the digital finance sector are focusing on developing cutting-edge digital finance technologies, such as AI-powered fintech software, to improve automation, compliance, and scalability within financial services. AI-powered fintech software consists of sophisticated digital platforms that utilize artificial intelligence to automate banking processes, ensure real-time regulatory compliance, and deliver intelligent financial solutions. For instance, in July 2025, Laraware Pvt Ltd, an India-based company, launched Nxtbanking, an AI-driven end-to-end fintech platform that offers scalable, secure, and intelligent financial solutions through advanced API integration and automation. It features an 8-layer KYC and compliance system conducting real-time verification of Aadhaar, PAN, GSTIN, and CIN, alongside AI-powered OCR for document reading, facial recognition with liveness detection, geo-tagging, and device fingerprinting. Security is enhanced through automated escalation and blacklist checks to prevent fraud. Designed to be secure, scalable, and developer-centric, Nxtbanking is positioned to advance India’s digital financial ecosystem.

In July 2025, Stripe Inc., an Ireland-based payment infrastructure company, acquired Orum for an undisclosed sum. This acquisition aims to bolster Stripe’s real-time bank payment capabilities by integrating Orum’s advanced payment orchestration and instant bank account verification technologies. This integration will enable faster, more reliable money transfers across ACH, RTP, FedNow, and wire rails, thereby expanding Stripe’s non-card payment infrastructure and improving cash flow solutions for platforms, marketplaces, and enterprise clients. Orum is a US-based provider of digital finance solutions.

Major companies operating in the digital finance market are Pine Labs Private Limited, PhonePe, Cashfree Payments Private Limited, Razorpay, Rupeek Fintech Private Limited, Indifi Technologies Private Limited, KreditBee Technology Private Limited, Lendingkart Technologies Private Limited, Easebuzz Software Private Limited, Kissht Limited, Juspay Technologies Private Limited, Freo Payments Private Limited, FlexiLoans Services Private Limited, Instamojo Technologies Private Limited, PayNearBy, Cashe Finance Private Limited, MoneyView Finance Private Limited, Niyo Limited, Fibe Technologies Private Limited, Fintso Technologies Private Limited.

North America was the largest region in the digital finance market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the digital finance market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the digital finance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The digital finance market consists of revenues earned by entities by providing services such as robo-advisory, crowdfunding, cryptocurrency services, and digital accounting. The market value includes the value of related goods sold by the service provider or included within the service offering. The digital finance market also includes sales of card readers, biometric authentication devices, cash deposit machines, digital kiosks, and token generators. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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